Cineverse Corp. reported its financial results for the three and six months ended September 30, 2024, revealing a decline in revenue and increased net losses compared to the same periods in the previous fiscal year. For the three months ended September 30, 2024, total revenue was $12,739,000, a decrease of $273,000 (2%) from $13,012,000 in Q3 2023. The six-month revenue also fell to $21,866,000, down $4.1 million (16%) from $25,992,000 in the prior year.

The decline in revenue was attributed to a significant drop in Digital Cinema revenue, which decreased by $2.4 million year-over-year, with no future revenue anticipated from this segment. However, streaming and digital revenue increased to $10,089,000 in Q3 2024, up 8% from $9,355,000 in Q3 2023, driven by strong performance in podcast and other revenue, which rose to $1,273,000, a 93% increase from $660,000 in the prior year.

Cineverse experienced an operating loss of $(861,000) for the three months ended September 30, 2024, compared to an operating income of $586,000 in Q3 2023. The net loss for the quarter was $(1,203,000), significantly higher than the $(317,000) loss reported in the same quarter last year. For the six months, the net loss increased to $(4,253,000) from $(3,853,000) in the prior year.

Total current assets decreased to $30,179,000 as of September 30, 2024, down from $32,721,000 as of March 31, 2024. Total assets also fell to $60,600,000 from $64,378,000 during the same period. Stockholders’ equity declined to $29,806,000 from $33,273,000, reflecting the ongoing losses.

Cineverse's cash and cash equivalents decreased to $2,429,000 from $5,167,000 as of March 31, 2024. The company reported net cash used in operating activities of $(2,381,000) for the six months ended September 30, 2024, an improvement from $(6,174,000) in the same period last year. The company also secured a $7.5 million Line of Credit Facility, with $4.6 million outstanding as of the reporting date.

Strategically, Cineverse has entered into a T3 Loan Agreement for up to $3.7 million, maturing on April 1, 2025, to support the distribution of the film "Terrifier 3." The company also has a 2024 Sales Agreement allowing for the sale of up to $15 million in Common Stock, although no shares have been sold as of the report date.